Market Overview:
The photonics market consists of technology and devices that harness the properties and behaviour of light. This includes optical fibres, lasers, imaging sensors and LED lighting among others. These find application across diverse end-use industries including healthcare, telecommunications, industrial manufacturing, sensing and consumer electronics. Optical fibres form the backbone of modern digital communication systems enabling seamless transfer of voice, data, and high bandwidth multimedia content globally. Lasers are integral in precision manufacturing of semiconductors, medical devices and optoelectronic components. Imaging sensors powered by photonic technologies are revolutionizing areas like computer vision, autonomous vehicles, biometrics and medical diagnostics.
Market key trends:
One of the key trends driving growth in the photonics market is the continuous expansion of optical communication networks globally to support rising data traffic. Content, social media and video streaming are major contributors to increasing data consumption. This has accelerated investments by telecom operators in high-speed 5G and fiber networks. Market leaders are collaborating to develop next-generation networks capable of 100Gb/s and beyond speeds. Another trend is the increased adoption of lidar sensors in automotive and robotics. Advanced driver-assistance systems and self-driving vehicles require highly accurate 3D mapping which lidar technologies based on photonics are well-suited to provide. This is boosting research into more compact and cost-effective lidar solutions.
The global Photonics Market Share is estimated to be valued at US$ 757.3 million in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Porter’s Analysis
Threat of new entrants: The photonics market requires heavy investments in R&D which creates high entry barriers for new companies.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of alternative products. However, the specialized nature of photonics products limits impact of buyer power.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to the availability of substitute components and focus on long-term relationships with manufacturers.
Threat of new substitutes: Threat of substitution is low as photonics products have highly specialized applications with limited substitutes.
Competitive rivalry: The photonics market is highly competitive due to presence of numerous global players offering similar products.
Key Takeaways
The global photonics market is expected to witness high growth, exhibiting CAGR of 7.9% over the forecast period, due to increasing demand for fiber optic cables and biophotonics applications.
On the regional front, Asia Pacific is expected to dominate the global photonics market during the forecast period. The region accounts for more than 35% of the global market share due to robust manufacturing industry and presence of key players in countries like China, Japan and South Korea. North America is also expected to exhibit significant growth owing to increasing investments in R&D by both private and government organizations in the US and Canada.
Key players operating in the photonics market are Carl Zeiss AG (Sentinel Photonics GmbH), Hamamatsu Photonics KK, Schott AG, Intel Corporation, Photonics SAS (Keopsys), Polatis Photonics Inc., Philips Photonics (Trumpf GmbH), Alcatel-Lucent SA, Osram Licht AG, Molex Inc. (Koch Industries), IPG Photonics, Infinera Corporation, Finisar Corporation, NEC Corporation, and Innolume GmbH. The market is characterized by high level of competition with major players focusing on new product innovations and mergers & acquisitions to gain higher market share.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it